Archive for July 31, 2014

Identifying Risk Exposures

As we continue our discussions on risk, knowing how to identify risk exposures is an intricate component in mitigating risk. Here are some thoughts on identifying risk exposures:

Is there a risk? Sometimes, the biggest challenge is determining if there is a risk.
• If the tasks were performed differently than intended, would this create a risk exposure for your organization? If so, then there is a risk.
• Are resources protected while performing tasks? If not, then there is a risk.

What is the magnitude of the risk?
• Is the risk within an acceptable range? If not, does the risk require some action to mitigate it?
• Have you clearly defined what the acceptable range for your organization is?
• What is your “risk tolerance?”

What action should be taken to mitigate risk?
• Knowing the risk cannot be eliminated, how can it be mitigated?
• Does the cost to mitigate the risk outweigh the risk itself?

Identifying risk exposure is the first step in mitigating risk within your organization.

Aldridge Kerr can assist you in identifying your risk exposures. Contact Charlene Aldridge at 972.447.9787 or CharleneAldridge@aldridgekerr.com to discuss how we can assist you in improving how you do what you do.

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Risk is a daily experience

I recently read an article that talked about dealing with risk. The article aligns perfectly with our most recent newsletter. The author reminded us that all risk isn’t necessarily negative and that we need to recognize that we deal with risk on a daily basis. For example, there is risk to crossing the street, driving a car, getting on a plane.

All of those risks can be minimized (mitigated) by calculating the risk and taking the necessary actions to reduce a negative outcome:
• Crossing the street isn’t very risky if we look both ways and make sure a vehicle isn’t coming
• Texting isn’t a good idea if we want to mitigate the risk of a car accident; while being alert and aware of our surroundings, following the traffic signs and speed limit increases the probability you won’t be in a car accident
• Flying with a commercial airline and/or skilled pilot who follows safety regulations will increase the probability of a safe flight

These are all common sense actions, although not always followed, that mitigate risks in our lives.

The same holds true within our organizations. We need to be looking at what we do every day to ensure we are making calculated decisions to mitigate risks in the workplace. We cannot eliminate risk, but we can take daily actions to mitigate it.

Look for some helpful hints on identifying risk exposures in our next blog.

And, be sure to sign up for our newsletter

By the way, Aldridge Kerr can assist you in mitigating the risks within your organization. Contact Charlene Aldridge at 972.447.9787 or CharleneAldridge@aldridgekerr.com to discuss how we can assist you in improving how you do what you do.